Volume 4, Issue 7, July – 2019 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Factors Influencing Stock Return in Coal Mining

Sub-Sector Registered in Indonesia Stock
Exchange in Period of 2011 to 2015
Siska Wulandari, Hakiman Thamrin
Magister of Management, MercuBuana University
Jakarta, Indonesia

Abstract:- This research aimed to test and analyze
about factors influencing stock return in coal mining
sub-sector registered in Indonesia stock exchange. The
research data were annual data for observation period
in years 2011 to 2015 obtained from company’s annual
report. The sampling method used was purposive
sampling. From 22 companies as population, there were
14 companies which fulfilled as sample. Furthermore,
the data analysis method used in this study was panel
data regression with Fixed Effect Model with R2 value
66.64%. The research result showed that Price Earning
Ration (PER) and Price to Book Value (PBV)
influenced positively towards the stock return,
meanwhile Return on Asset (ROA), Debt to Equity
Ratio (DER), and Current Ratio (CR) did not influence
towards the stock return.
Keywords:- Price Earning Ratio (PER), Return on Asset
(ROA), Price to Book Value (PBV), Debt to Equity Ratio
(DER), Current Ratio (CR), Stock Return.
I. INTRODUCTION
Stock return of coal mining sub-sector in period of
2011-2015 had lower return than other returns. The
following data are the development of stock return in
mining sector registered in Indonesia Stock Exchange in
period of 2011-2015.

Table 1:- Stock Return Development in Mining Sub-sector Registered in Indonesia Stock Exchange in Years of 2011 to 2015 (in
Percent)
Source: www.sahamok.com(data analyzed)

Based on the Table 1 above, it is seen that the highest
stock return was rock mining sub-sector as high as 5.8%,
metal mining with mean -0.13%, coal mining -28.4%, and
oil and gas -9.2%. In the averages of stock return in years
of 2011-2015, in the coal mining sub-sector was happened
the lowest return among the others.
Thus, the high-low stock return is influenced by
financial ratios, and they are liquidity, solvability,
profitability, business activity, and market assessment
(Wiagustini, 2010: 75). The study of coal mining industry
which has the lowest average of decrease needs to be done
to know the influence of PER, ROA, PBV, DER and CR
towards Stock Return in Coal Mining Sub-sector
Registered in Indonesia Stock Exchange in Period of 2011-
2015.
II. LITERATURE REVIEW
A. Theoretical Study
 Capital Asset Pricing Model (CAPM)
CAPM is firstly introduced by Sharpe, Lintner and
Mossin in mid of 1960-ies. CAPM is a model that
correlates level of expectation return of a risking asset with
that asset risk in balanced market condition. CAPM

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Volume 4, Issue 7, July – 2019
explains that the risk and return correlate positively, which
means that the higher the risk, the higher the return
(Tandelilin, 2010).
 Arbitrage Pricing Theory (APT)
Ross (1977) formulates a theory namely Arbitrage
Pricing Theory (APT). like CAPM, APT draws the
relationship between rick and income, but by using
different assumption and procedure.
 Signaling Theory
Signaling theory appeared because of the existence of
information asymmetry. This concept was firstly developed
by Akerlof (1970). He used an example from a used car in
which the potential buyer could not decide the real price of
the car easily, so there was possibility that the buyer paid
for beyond average price. This condition profited the seller,
for the seller got the price beyond the average causing by
unknown information by the buyer. Moreover, from
another point of view, this condition also inflicted the seller
if the seller sold car of premium quality with the lower
price that the actual price. It could be happen because of the
seller’s frightening if he or she sold the car with very
expensive price to the potential buyer.
Ross (1977) stated that company executive party
having better information about the company would be
motivated to convey the information to the investor
candidate in order that the company stock improved. Thus,
signaling theory indicates the existence of the information
asymmetry between company management and other
interested parties with the information.
In addition, signaling theory explains about how the
company should give signals towards the financial report
user. These signals give information about the efforts that
have been done by management to realize the stock
owner’s desire. Moreover, the signals could be promotion
or another information which states that that company is
better than the others.
 Agency Theory
Agency theory explains about separation between
management function by manager with ownership function
by the stock owner in a company (Hasnawati and Sawir,
2015).
B. Company performance
Company performance is a company view in certain
period of time. To know the performance condition, the
company could assess the company performance.
According to Mulayadi (1995), performance assessment is
periodical decision of organization effectiveness,
organization schema, and the employers based on the
target, standard and criteria that have been decided before.
C. Financial Ratio Analysis
Ratio analysis is needed to assess the company
performance. Moreover, the financial ratio kinds are
divided into 5 kinds: liquidity, solvability, activity ratio,
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International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
profitability ratio and market assessment ratio (Home and
Wachowicz, 2008:138).
 Liquidity Ratio
Liquidity ratio is a ratio showing the company’s
capability to pay off the short-term duty (Home and
Wachowicz, 2008: 138). Furthermore, the liquidity ratio
used in this research was Current Ratio (CR).
 Solvability Ratio
Solavability ratio is a ratio showing the company’s
capability to square accounts in long-term time (Home and
Wachowicz, 2008: 140). In addition, the solvability ratio
used in this research was Debt to Equity Ratio (DER).
 Activity Ratio
This ratio measures how effectively a company
benefits its asset (Home and Wachowicz, 2008: 142). This
ratio regards that it is better by the existence of proper
balance between selling and various aspects of assets such
as supply, permanent assets, and other assets. Furthermore,
the activity ratio used in this research was Price to Book
Value (PBV).
 Profitability Ratio
Profitability ratio functions to show the company’s
capability in producing profit of company’s assets utility
(Home and Wachowicz, 2008: 148). Moreover, the
profitability ratio used in this research was Return On Asset
(ROA).
 Market Assessment Ratio
Market assessment ratio is a ratio relating to the profit
level gotten from the stock price, cash flow, and book value
per share (Ehrhardt and Brigham, 2011: 100). In addition,
the market assessment ratio used in this research was Price
EarningRatio (PER).
D. Factors Influencing the Stock Return
Factors influencing the are divided into 2 categories:
macro and micro factors (Samsul, 2008: 200).
 Macro factor is factor from out of the company that is
factor including domestic general interest, infancy level,
foreign exchange rate, and international economy
condition; then, macro factor including national politic
incidents, international politic incidents, war, mass
demonstration, and living environment case.
 Micro factor is factor from inside of the company itself
that is factor including net profit per stock, book value
per stock, debt ratio to equity, and other financial ratios.
E. Research Variables
 Price Earning Ratio (PER)
Price Earning Ratio is ratio between stock price and
income in each stock sheet, and it is an indicator of
development or growth of the company in the future. The
company which has high PER shows the high market value
of the stock also. PER formula is as follows (Ehrhardt and
Brigham, 2011: 101).
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Volume 4, Issue 7, July – 2019 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
PRICE SHARE
PER =
EPS

 Return on Asset (ROA)

Return on Asset (ROA) is a profitability ratio used to
measure the company effectiveness in getting profit and
benefitting all assets that are had (Ang, 1997).
𝑵𝑰𝑨𝑻
ROA = 𝑻𝒐𝒕𝒂𝒍𝑨𝒔𝒔𝒆𝒕

 Debt to Equity Ratio (DER)

Debt to Equity Ratio (DER) is ratio used to measure
the leverage level in showing company’s capability to
fulfill the long-term duty. This ratio is used to measure debt
with equity. The DER formula is as follows.

Total Debt
DER =
Total Shares Holder Equity
 Price to Book Value (PBV)
One of ratios is PBV (Price to Book Value). Robert
Ang (1997) simply states that PBV is market ratio used to
measure the stock market price performance to book value.
PS
PER =
BVS
 Current Ratio (CR)
Current Ratio (CR) is ratio to measure how far the
current assets of a company could pay off the short-term
duty. The CR formula is as follows (Horne danWachowicz,
2008:139).
Aset Lancar
CR =
Liabilitas Lancar
F. Thinking Framework
Based on the theories and previous researches, there
are some factors that are identified in influencing Stock
Return, they are Price Earning Ratio (PER), Return On
Asset (ROA),Debt to Equity Ratio (DER),Price to Book
Value (PBV), and Current Ratio (CR). Therefore, it needs
statistic testing to know how far the influence is towards
the independent variable towards Stock Return. Thus, the
thinking framework of this research is showed as in the
Figure 1.
Fig 1:- Thinking Framework
 Hypotheses
Hypothesis is temporary answer towards the research
that the existence should be tested empirically by using
statistic testing (Kothari, 2004: 184). Furthermore, the
hypotheses in this research are as follow.
 H1: Price Earning Ratio (PER) has influence towards
Stock Return.
 H2: Return On Asset (ROA) has influence towards Stock
Return.
 H3: Price to BookValue (PBV) has influence towards
Stock Return.
 H4: Debt to Eguity Ratio (DER)has influence towards
Stock Return.
 H5: Current Ratio (CR) has influence towards Stock
Return.
III. RESEARCH METHODS
A. Research Design
This research was causal associative research with aim
to look or know the relationship or influence between two
variables or more (Widodo, 2018: 67). Based on the causal
associative research, in this research would be conducted
hypothetical testing of variables of Price Earning Ratio
(PER), Return On Asset (ROA), Debt to Equity Ratio
(DER), Price to BookValue (PBV), and Current Ratio
(CR), towards Stock Return.

B. Data Collection
The data used were secondary data. In general, the
secondary data include proof or fact, note or historical
reports that have been set in archives (documenter data),
either published or not. Moreover, the secondary data
included Price Earning Ratio (PER), Return On Asset
(ROA), Debt to Equity Ratio (DER), Price to BookValue
(PBV), and Current Ratio (CR). Furthermore, this research
was based on company’s performance summary that was
noted in 2011 to 2015 and annual report of the company
from 2011 to 2015 published in Indonesia Stock Exchange.

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Volume 4, Issue 7, July – 2019
C. Population and Sample
The population chosen in this research was coal
mining sub-sector registered in Indonesia Stock Exchange
in 2011-2015. Based on the information gathered from the
Indonesia Stock Exchange, the number of company
registered in coal mining sub-sector in 2011-2015 was 22
companies.
D. Data Analysis Method
The data used in this research were secondary data,
that were Price Earning Ratio (PER), ROA (Return On
Asset), DER (Debt To Equity Ratio), Price to Book Value
(PBV) andCurrent Ratio (CR).In this research, the data
were based on the company’s performance summary
registered in 2011-2015 and the company’s annual report in
Table 2:- The Descriptive Statistic Testing Result
Source: Data analyzed fromeviews (2018)
 Stock Return
From the statistic table above, it is known that the
minimum value of was -90.00000 and the maximum was
835.5000. The result indicates that the value of of the coal
mining of this research sample was around -90.00000 until
835.5000 with mean 3.740000 with deviation standard
133.6068. That the mean was lower than the deviation
standard (3.740000 <133.6068) indicates that the spread
was not good.
 Price Earning Ratio (PER)
From the statistic table above, it could be known that
the minimum value of PER was -133.0500 and the
maximum was 296.0300. The result indicates that the value
of PER of the coal mining as the research sample was
around 133.0500 until 296.0300 with mean 29.70571 with
deviation standard 65.86524. In addition, that the mean was
lower than the deviation standard (9.995429<11.94170)
indicates that the ROA value was not good.
 Debt to Equity Ratio (DER)
From the statistic table above, it could be known that
the minimum value of DER was -24.12000 and the
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International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
period of 2011 and 2015 published in Indonesia Stock
Exchange. The statistical analysis used in this research was
Panel Data Regression analysis by using e-views program
version 9.5. The panel data regression used was the group
of cross section and time series. The data were time series
because the data in this research were in certain time
interval that was 2011 to 2015. Meanwhile, the cross
section data were the data in certain time period in some
coal mining sub-sector companies. However, before the
regression analysis was done, the panel data were analyzed
first by using descriptive statistic.
IV. RESULT AND DISCUSSION
A. Descriptive Statistic Result
maximum was 14.81000. The result indicates that the value
of PER of the coal mining as the research sample was
around 24.12000 until 14.81000with mean 2.297429with
deviation standard 4.608235. In addition, that the mean was
lower than the deviation standard (2.297429 <4.608235)
indicates that the DER value was not good.
 Price Book Value (PBV)
From the statistic table above, it could be known that
the minimum value of PBV was 0.290000 and the
maximum was 46.52000. The result indicates that the value
of PER of the coal mining as the research sample was
around 0.290000 until 46.52000with mean 5.080000 with
deviation standard 7.241804. In addition, that the mean was
lower than the deviation standard (5.080000 < 7.241804)
indicates that the PBV value was not good.
 Current Ratio (CR)
From the statistic table above, it could be known that
the minimum value of CR was 19.90000 and the maximum
was 470.6600. The result indicates that the value of PER of
the coal mining as the research sample was around
19.90000 until 470.6600with mean 158.0039 with deviation
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standard 75.87089. In addition, that the mean was higher
than the deviation standard (158.0039 < 75.87089)
Fixed Effect Model
Explanation Coefficient
C -38,27658
PER 5,029129
ROA -0,398248
DER 3,003880
PBV 7,984768
CR -0,014758
R-Square 0,666357
Adjusted R-squared 0,578012
F-statistik 5,476084
Prob(F-statistic) 0,000000
Table 3:- The Testing Result of Factors Influencing the towards Coal Mining Sub-sector in Indonesia Stock Exchange in Period of
2011-2015 with Approach
By using Fixed Effect model, it was formed panel data
regression equation model as formulated below.
R = -38,27658C + 5,029129PER - 0,398248ROA +
3,003880DER + 7,984768PBV - 0,014758CR
The equation explains:
 Constant = -38.27658 with significance 0.4052
If the value of each independent variable was 0
(constant), the (Y) had value -38.27658. The negative
constant value meant that the company lasted capital loss.
 PER (X1) = 0.029129 with significance 0.0150
The significance value was lower than 0.05 (<0.05),
so PER influenced significantly-positively towards with
significance of α = 5%. If there was increase of PER as
many as one unit, it would be followed by the increase of
(Y) 0.129924, and vise versa, with variable assumption of
X2, X3, X4, X5 caterisparitis.
 ROA (X2) = -0.398248 with significance 0.7616
The significance value was higher than 0.05 (> 0.05),
so ROA influenced negatively towards with significance of
α = 5%. If there was increase of ROA as many as one unit,
it would be followed by the increase of (Y) -0.398248, and
vise versa, with variable assumption of X1, X3, X4,and X5
caterisparitis.
 DER (X3) = 3.003880 with significance 0.3985
The significance value was higher than 0.05 (> 0.05),
so DER influenced negatively towards with significance of
α = 5%. If there was increase of DER as many as one unit,
it would be followed by the increase of (Y) 3.003880, and
vise versa, with variable assumption of X1, X2, X4, and X5
caterisparitis.
 PBV (X4) = 7.984768 with significance0.0068
The significance value was lower than 0.05 (<0.05),
so PBV influenced significantly-positively towards with
significance of α = 5%. If there was increase of PBV as
many as one unit, it would be followed by the increase of
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indicates that the CR value was good.
t-Statistic Probability
-0,839309 0,4052
2,807220 0,0150
-0,304956 0,7616
0,851517 0,3985
3,792429 0,0068
-0,058779 0,9534
(Y) 7.984768, and vise versa, with variable assumption of
X1, X2, X3, dan X5 caterisparitis.
 CR (X5) = -0.014758 with significance0.9534
The significance value was higher than 0.05 (> 0.05),
so CR influenced negatively towards with significance of α
= 5%. If there was increase of CR as many as one unit, it
would be followed by the increase of (Y) -0.014758, and
vise versa, with variable assumption of X1, X2, X3, and X4
caterisparitis.
B. Result of F Test
This testing was done to look whether independent
variable together influence dependent variable. It could be
seen from table 4.7, with probability level 95% (α = 5%), p-
value 0.0000 < 0.05 and F-testing 5.476084 that was higher
than F-table (2.38), that H0 was rejected, so it indicates that
PER, ROA, DER, PBV, and CR all together influence the
significantly.
Table 4:- The Result of F Testing
Source: Analysis result of E-Views 9.5
Therefore, it could be seen from table 4, with
probability level 95% (α = 5%), p-value 0.0000 < 0.05 and
F-testing 5.476084 that was higher than F-table (2.38), that
H0 was rejected, so it indicates that PER, ROA, DER, PBV,
and CR all together influence the significantly.
C. Result of t Test
Statistic result of t-test basically shows how far the
influence of an independent variables (PER, ROA, DER,
PBV, CR) individually in explaining the variety of
dependent variable (Stock Return). The t-test result is
presented in table 5 below.
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Explanation Coefficient
C -38,27658
PER 5,029129
ROA -0,398248
DER 3,003880
PBV 7,984768
CR -0,014758
R-Square 0,666357
Adjusted R-squared 0,578012
F-statistik 5,476084
Prob(F-statistic) 0,000000
Table 5:- The Result of t-test
Based on the table 5 above, it is gotten the analysis
result as follow.
 The Influence of Price Earning Ratio (PER) towards
Stock Return
Based on the table 5 above, it could be seen that the
PER probability was 0.0150 that was lower than 0.05 and t-
testing (2.807220) that was higher than t-table (2.31) with
positive direction, so this variable was in area of
H0rejection which indicates that PER influences positively
towards of coal mining company registered in Indonesia
Stock Exchange in years of 2011 to 2015.
 The Influence of Return on Asset (ROA) towards Stock
Return
Based on the table 5 above, it could be seen that the
ROA probability was 0.7616 that was higher than 0.05 and
t-testing (-0.304956) that was lower than t-table (2.31) with
negative direction, so this variable was in area of
H0acceptance which indicates that ROA influences
negatively towards of coal mining company registered in
Indonesia Stock Exchange in years of 2011 to 2015.
 The Influence of Debt to Equity Ratio (DER) towards
Stock Return
Based on the table 5 above, it could be seen that the
DER probability was 0.3985 that was higher than 0.01 and
t-testing (0.851517) that was lower than t-table (2.31) with
negative direction, so this variable was in area of
H0rejection which indicates that DER influences negatively
towards of coal mining company registered in Indonesia
Stock Exchange in years of 2011 to 2015.
 The Influence of Price Book Value (PBV) towards Stock
Return
Based on the table 5 above, it could be seen that the
PBV probability was 0.0068 that was lower than 0.01 and t-
testing (3.792429) that was higher than t-table (2.31) with
positive direction, so this variable was in area of
H0rejection which indicates that PBV influences positively
towards of coal mining company registered in Indonesia
Stock Exchange in years of 2011 to 2015.
 The Influence Current Ratio (CR) towards Stock Return
Based on the table 5 above, it could be seen that the
CR probability was 0.9534 that was higher than 0.01 and t-
testing (-0.058779) that was lower than t-table (2.31) with
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International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
t-Statistic Probability
-0,839309 0,4052
2,807220 0,0150
-0,304956 0,7616
0,851517 0,3985
3,792429 0,0068
-0,058779 0,9534
negative direction, so this variable was in area of
H0rejection which indicates that CR influences negatively
towards of coal mining company registered in Indonesia
Stock Exchange in years of 2011 to 2015.
D. Determination Coefficient (R2)
Determination coefficient test is done to know how
big the influence of independent variables towards
dependent variable (Gujarati, 2012:13). The result of
determination coefficient test is presented in table 5.
Based on table 5 above, R-square (R2) value 0.666357
shows that 66.64% of variants of could be explained by the
change in PER, ROA, DER, PBV and CR variables,
meanwhile the rest, 33.36%, could be explained by other
factors from out of this research.
E. Study of Hypothetical Testing Analysis
 The Influence of Price Earning Ratio (PER) towards
Stock Return
Price Earning Ratio (PER) influenced positively
towards the of coal mining company registered in Indonesia
Stock Exchange in years of 2011 to 2015. This research is
in line with the third hypothesis stating about Price Earning
Ratio (PER). In addition, it is also in line with theory from
Sharpe, Gordoon and Baley (2006) stating that company
with high-level growth opportunity generally has high PER
also, and this shows that market hopes profit growth in the
future. Thus, the higher PER is, the higher stock price is.
Furthermore, if PER value is negative, it emerges
speculation that bad performance of company is because it
is priced too cheap. An investor should pay attention
towards proper PER value stock, which does not work out
underpriced or overpriced/ overvalued. Furthermore, Price
Earning Ratio (PER) is an important measurement for
investor in investing because PER is admitted as good
assessment method, and it includes all companies including
in estimating stock price or value. In addition, the
investor’s expectation in conducting stock analysis through
financial ratios like PER is due to the investors’ or the
investor candidates’ expectation existence on the proper
return result of a stock invest. The higher Price Earning
Ratio means that the higher the stock price or the better the
investors admiring the stock. Moreover, high stock price
signs that the stock is being delighted by the investors, and
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it makes value high. Then, it supports the researches by
Farkhan and Ika (2013), Petcharabul and Romprasert
(2014), and Öztürk andKarabulut (2018) showing that PER
has positive influence towards Stock Return.
 The Influence of Return on Asset (ROA) towards Stock
Return
ROA did not influence the of coal mining company in
period of 2011-2015. In addition, it is in the opposite of the
first hypothesis which was based on signaling theory
stating that ROA influenced positively towards Stock
Return. Moreover, theoretically, if ROA increases,
company’s performance will be better because the returning
level is higher. Furthermore, plantation industry is an
industry which needs quite high invest, so the investors
perhaps do not make standard of ROA in making invest
decision. Then, this study result is in line with researches
from Ade et.al (2015) and Oroh (2019) stating that ROA
does not influence towards Stock Return.
 The Influence of Debt to Equity Ratio (DER) towards
Stock Return
Debt to Equity Ratio (DER) did not influence towards
Stock Return. This result is in line with the first hypothesis
stating that Debt to Equity Ratio (DER) influences
negatively towards Stock Return.
Too high DER has bad impact towards company’s
performance because with higher debt means that
company’s constant load will be higher and decrease profit.
Thus, with high debt level which is loaded to the stock
owner, exactly it will increase the invest risk to the invest
owners.
Moreover, mining company is risking-conditional
industry, especially in exploration stage to construction
which have high uncertainty and need very high capital
because the risk level is high, so national banks sometimes
do not dare enough to support the finance for the at that
stage-mining company and quite dare in giving loan if the
company is in production stage. Company with high Debt
to Equity Ratio (DER) has high debt cost and will decrease
the solvability level of the company. In addition, the
investors tend to avoid the stocks with high DER. That case
will make the decreasing. This research result supports the
studies from AL-Qudah and Laham (2013), Acheamponget
al. (2014), SugiartidanAisjah and Ghi (2015), and Fitriana
et.al (2016) showing that DER influence negatively
towards the Stock Return.
 The Influence of Price Book Value (PBV) towards Stock
Return
PBV influenced positively towards of coal mining
sub-sector company in period of 2011-2015, and it was
based on the hypothesis of the research. Price to Book
Value is known as company’s value. The lower the PBV is,
the cheaper the company stock, and vise verse. Moreover,
the value of coal mining sub-sector faced decreasing trend
in the period of 2011-2015 which caused the company’s
also decreased. Then, this research is in line with the
researches from Safdar et.al (2013) and Snjay (2012)
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International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
showing that PBV influences positively towards Stock
Return.
 The Influence of Current Ratio (CR) towards Stock
Return
CR did not influence towards coal mining sub-sector
company’s stock in the period of 2011-2015. Ratio of
Liquidity Current Ratio is ratio to measure the company’s
capability in paying short-term debt. The CR ratio value in
this period was fluctuated and tended to decrease.
However, the high CR value does not show good finance
ratio surely. If the current ratio is low means that the
company does not have enough capital to pay debt, and if it
is high does not mean that the finance ratio is good.
Furthermore, this could be caused by the less-controlled
cash management.
In coal mining sub-sector company, investors do not
consider the returning profit towards the capital, but
perhaps the investors consider the profit return form the
selling result by the high selling margin which will interest
more the investors, so CR ratio does not make
consideration for the investors to invest. Then, this research
is in line with researches from Sekar and Prasetiono (2016)
and Vinola and Kiki (2016) showing that Current Ratio
does not influence towards the company’s return.
V. CONCLUSION
 Price Earning Ratio (PER) influences positively towards
the of coal mining sub-sector company registered in
Indonesia Stock Exchange in the years of 2011-2015.
 Return on Asset (ROA) does not influence towards the
of coal mining sub-sector company registered in
Indonesia Stock Exchange in the years of 2011-2015.
 Debt to Equity Ratio (DER) does not influence towards
the of coal mining sub-sector company registered in
Indonesia Stock Exchange in the years of 2011-2015.
 Price Book Value (PBV) influences positively towards
the of coal mining sub-sector company registered in
Indonesia Stock Exchange in the years of 2011-2015.
 Current Ratio (CR) does not influence towards the of
coal mining sub-sector company registered in Indonesia
Stock Exchange in the years of 2011-2015.
RECOMMENDATION
Based on the study of the analysis result and some
conclusions above, the suggestions are given to complete
this research as follow.
A. For Investors
The investors who want to invest in mining company
are suggested to choose the company having the returning
level with increasing trend in order to decrease the risk in
investing. The investors also should be able to analyze
invest product well through either technical or fundamental
analysis.
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Volume 4, Issue 7, July – 2019
B. For Companies
 The companies are better to pay attention to variables
which influence negatively towards the Stock Return,
they are ROA, DER and CR in the case to be the
companies’ performance fixation in achieving good
stock price for external company part, so there will be
increase of the Stock Return.
 It is better for the companies to manage the assets in
order that the stock increases by increasing the sales
with the available assets.
C. For the Further Research
 It could be developed from this research by adding
other variables such as Quick Ratio (QR), Net Profit
Margin (NPM), Earning Per Share (EPS), inflation
level, and rate of exchange.
 It needs the additional period of observation because the
longer the time interval to do it, the bigger the
opportunity to get information about the proper
variables to get accurate research.
 For the further research, it is expected to lengthen the
research period.
LIMITATION OF THE RESEARCH
The researcher focused on and limited the influence of
Return on Assets (ROA) which was proxy of profitability.
Moreover, Current Ratio (CR) was proxy of liquidity.
Then, Debt to Equity Ratio (DER) was one of proxies used
to measure the company’s performance from solvability
aspect, Price to Book (PBV) was proxy of the company
value, and market assessment ratio was known with Price
represented with Price Earning Ratio (PER).
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